Question

Melanie uses an old compact disk to store her company's contract documents. She finds out that she cannot access any documents because the compact disk is not compatible with the computer devices in her company. What type of risk led to this complication? Risk hampered Melanie's work.

Answer 1

Answer: The risk of obsolescence

Explanation: This is in fact the risk that some process, technology or hardware used in the company is outdated, so there are newer, more innovative products, hardware, etc. In this way, the use of such outdated technologies and the like, creates the opportunity to reduce competitiveness in the market, which directly affects the point of each company, which is profit. So in this case too, the risk of obsolescence led to the situation that outdated technology, specifically, the use of an old compact disc, prevents a smooth business process. Not keeping up with new technologies creates this kind of risk, which consequently leads to the inability to access certain data required for the operation of the company, which affects profit.